Thailand’s baht declined for a 10th day, the longest losing streak since September 2011, and bonds gained on concern the economy’s outlook is deteriorating. Consumer prices rose 1.48 percent last month from a year earlier, the slowest pace in a year, the Commerce Ministry reported yesterday. That compares with the median estimate of 1.6 percent in a Bloomberg survey. The finance ministry cut its 2014 economic growth forecast last week to 1.2-1.7 percent from a previous estimate of 2 percent. The baht declined 0.1 percent to 32.679 per dollar as of 9:55 a.m. in Bangkok, according to data compiled by Bloomberg. It touched 32.73 earlier, a five-month low. One-month implied volatility, a measure of expected exchange-rate swings used to price options, rose 10 basis points, or 0.1 percentage point, to 4.84 percent. “Yesterday’s inflation data continue to show a weaker economic backdrop,” said Jonathan Cavenagh, a Singapore-based strategist at Westpac Banking Corp. “There’s still a question of how strong growth is going to be in Thailand.” Five-year bonds advanced for a third day. The yield on government notes due June 2019 slipped one basis point, or 0.01 percentage point, to 2.59 percent, according to data compiled by Bloomberg. One-year interest-rate swaps dropped two basis points to 1.86 percent, below the central bank’s benchmark 2 percent policy rate. The contracts declined to 1.85 percent on Oct. 16, the lowest since June, data compiled by Bloomberg show.
Posted on: Tue, 04 Nov 2014 10:16:26 +0000
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